REIPPPP BID WINDOW 5 PREFERRED BIDDERS ANNOUNCED
28 October 2021
The Department of Mineral Resources and Energy (DMRE) announced the preferred bidders for the Fifth Bid Window (BW5) under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which will see just short of 2 600MW of new generation capacity being developed by Independent Power Producers (IPPs), including 1 600 MW from onshore wind energy and 1 000 MW from Solar Photovoltaic (Solar PV) power plants, in line with the government’s intention to increase generation capacity and ensure the security of energy supply to society.
Responding to the announcement, the South African Wind Energy Association (SAWEA) has congratulated the DMRE for keeping to the end-October deadline, as laid out in May 2021 and welcomes the announcement of twelve onshore wind IPPs in the allocated 25 renewable energy projects. These projects were selected from over 100 submissions and include: Coleskop Wind Energy Facility; San Kraal Wind Energy Facility; Phezukomoya Wind Energy Facility; Brandvalley Wind Farm; Rietkloof Wind Farm; Wolf Wind Farm; Beaufort West Wind Facility; Trakas Wind Facility; Sutherland Wind Facility; Rietrug Wind Facility; Waaihoek Wind Facility; and Dwarsrug Wind Facility.
“Responding to the Minister’s announcement, SAWEA’s Chair, Mercia Grimbeek, said, “This is a huge step towards rolling procurement, which is what the country and wind power sector needs, in order for renewables to be able to deliver adequate energy to the country and help shift the economy onto a positive trajectory.”
Wind and solar power weighted average bid price for this round is pegged at ZAR473.94/MWh, indicating the affordability of green electricity for new power generation in South Africa, at a time that the country yet again experiences rolling blackouts. Furthermore, these 25 projects represent over R50 billion of investment for the SA economy and deliver almost 14 000 job opportunities.
The Minster confirmed that R2.7 billion has been committed over the 20-year operational lifespan of these projects, which will predominantly benefit rural communities across a number of provinces. BW5 represents project ownership of almost 50% South African of which 34% is black-owned.
Responding to the Minister’s announcement that the country can expect BW6 to be opened in January 2022, Grimbeek added, “Consecutive bidding rounds will enable local manufacturing facilities to be re-established and the potential expansion of already operating manufacturers, which is crucial in creating long term sustainable jobs”.
SAWEA noted that to enable the required quantity and quality of components will require at least two to three years of investment and development, reinforcing the need for rolling procurements, without interruptions or delays. This will allow all aspects of the value chain, and not only the manufacturing sector, to expand.